Explain for which reasons the real wage is expected to be acyclical in the Classical model, countercyclical in the Keynesian model and procyclical in the New Keynesian model. Which model would better fit the empirical evidence? Real Wage is defined as the payment to labour measured in units of output adjusted for the current level of inflation. This can be written as: Real Wage= Nominal Wage x (Expected Price Level/ Price Level) W/P = ω x X /P P Real Wage cyclicality is the relationship between the real wage and the business cycle. I will try to find the direction real wage moves with respect to output in the Classical, Keynesian and New Keynesian models. Classical economics is widely regarded as the first modern school of economic thought. The theory begins with the simple production function: Y=F(K,L) Letting Y denote the amount of output, K denoting capital and L denoting labour. This equation states that output is a function of capital and labour. The production function can be used to help maximise profit where: Profit = Revenue – Labour Costs – Capital Costs = (Price x Output) – (Wage x Labour) – (Rent of Capital x Capital) = PY – wL – rK = P x F (K,L) – wL – rK The competitive firm takes the product price and the factor prices (wage and rent of capital) as given and chooses the amount of labour and capital to maximise profits. When the competitive, profitmaximising firm decides how much labour to hire it takes into account the effect on profit. It therefore compares extra revenue from an increase in production that results from added labour to the extra cost of wages: ∆Profit = ∆Revenue - ∆Cost = (Price x MPL) - W MPL, the marginal product of labour, is the extra amount of output the firm gets from one extra unit of labour holding capital fixed. MPL is used to show change in revenue because an extra unit of labour produces MPL units of output which sells at P dollars. Extra revenue is P x MPL and the extra cost of hiring...

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...acyclical in the classical model, countercyclical in The Keynesian Model and Procyclical in the New Keynesian model. Which model better fits the empiricalevidence?
Introduction
The concept of real wages has increasing significance in the current world. Rising inflation and recession in almost all major economies have led to the importance of studying real wage with respect to prices and economies themselves. Such a study would require an in-depth understanding of the business cycle of real wages. From Classical theory to New Keynesian theory, Cyclicality of real wage has been defined in contrasting terms. Much of the conflicting evidence is simply characteristic of empirical research. Researchers use different model specifications and estimation techniques. Empirical results are often sensitive to the choice of cyclical indicators and time period chosen (Dimelis, 2007).
This essay seeks to explain why real wage is expected to be acyclical in the classical model, counter-cyclical in the Keynesian model and procyclical in the New Keynesian model and shed light on which model best fitsempiricalevidence.
Real Wage
Real wage is defined as the “wage paid to the average worker divided by the price level.”(Delong and...

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A fitmodel of leadership and two empirical examinations
: Sweet, Kenneth Michael, Jr.. : University of Houston, ProQuest, UMI Dissertations Publishing, 2012. 3504759. ProQuest : In a three manuscript dissertation, I propose a Meso-model of organizational leadership based on fit theory and then test key propositions of the model concerning exchange relationships between leaders and followers. The first manuscript examines existing leadership theory highlighting points of agreement and contention among theoretical paradigms, and then presents a fit-based model designed to integrate theory and allow for more directed growth in the field. The second...

...EmpiricalEvidence
The study of addiction has included alcoholism and drug addiction for a long time. The recent obesity epidemic has brought food addiction as a serious concern even though it is still a controversial issue. It is difficult to accept the idea of food being an addiction. Addiction has been defined as” a primary, chronic disease involving brain reward, motivation, memory and related circuitry.”(Whitepaper) There are numerous studies and research that support the fact that over eating food can have the same effect on the brain as those addicted to drugs.
One of the studies took place in the research laboratory in Princeton University by Professor Bart Hoebel. He experimented with rats overeating a sugar solution. The rats would go twelve hours without food and than be given a sugar solution with their meal. The experiment was to release dopamine into the rat’s brain the same way in which it is released into a drug addict’s brain. The research concluded, “ that the rats developed many behaviors and changes in the brain that are similar to the effects of some drugs of abuse, including naloxone-precipitated withdrawal.” (Epstein,2010).
Another experiment conducted by Johnson and Kenny involved giving rats a cafeteria-style diet high in carbohydrates and fat and than breaking the rats into three groups. The first group of rats ate only regular rat food. The second group of rats ate the regular food but was also allowed...

...GLOBALIZATION AND ECONOMIC GROWTH: EMPIRICALEVIDENCE FROM NIGERIA
By
KELECHI IYOKO.
Abstract
The concomitant unequal distribution of the benefits of Globalisation and the fear expressed by most developing countries about the negative impact of globalization, has made the question on the relationship between globalization (characterized by foreign direct investment, economy openness and net capital flows) and Economic Growth both in developed and developing countries lie at the heart of debates on economic development policy. This paper investigates the causal relationship between globalization (characterized by FDI and Openness) and Economic Growth using co-integration techniques on time series data in Nigeria. The result of the study shows a unidirectional causality between FDI and Growth with FDI Granger causing growth while there was no causality between Openness and Growth. Rather, openness Granger causes external debt in Nigeria. The study encouraged that the country should imbibe some of the sketched contours of an appropriate development strategies for developing economies which includes debt reduction, domestic fiscal discipline, effective exchange rate policy and the diversification of the domestic base.
Keywords: Globalization, Economic Growth, Granger causality, Nigeria.
INTRODUCTION
Globalization and economic competitiveness remains one of the most controversial subjects in recent discourse. Several authors...

...sufficient empirical support for each of these hypotheses.
The efficiency of financial markets has long been a contentious issue, and as financial markets have evolved both in their breadth and complexity the question whether financial markets can effectively and efficiency allocate resources has never been more relevant. In this essay I intend to investigate the validity of the various forms of the Efficient Market Hypothesis (EMH) using empiricalevidence from various studies; and attempt to determine whether any of these forms of the EMH are accurate in describing the workings of international financial markets. Traditional finance textbooks have long offered three ‘versions’ of informational efficiency of financial markets: Weak, Semi-Strong and Strong, with the definitions of these ‘versions’ relatively settled. I will firstly outline these versions and then evaluate the evidence to determine their validity. The Weak form of the EMH asserts that financial markets efficiently process all past prices of a financial asset which are reflected in its current price. Furthermore, it implies that asset prices follow a random walk process. This renders technical analysis futile as all information contained in previous prices has been efficiently priced in. Formally: ( ) ( )
The weak form of the EMH has had a substantial amount of research into testing its validity, in particular using econometric analysis. In...

...International Journal of Statistics and Probability; Vol. 1, No. 2; 2012 ISSN 1927-7032 E-ISSN 1927-7040 Published by Canadian Center of Science and Education
The Eﬃcient Market Hypothesis: EmpiricalEvidence
Martin Sewell1
1
Faculty of Economics, University of Cambridge, Cambridge, United Kingdom
Correspondence: Martin Sewell, Faculty of Economics, University of Cambridge, Sidgwick Avenue, Cambridge CB3 9DD, United Kingdom. Tel: 44-797-414-5461. E-mail: mvs25@cam.ac.uk Received: June 6, 2012 Accepted: August 3, 2012 Online Published: October 17, 2012
doi:10.5539/ijsp.v1n2p164 Abstract
URL: http://dx.doi.org/10.5539/ijsp.v1n2p164
The eﬃcient market hypothesis (EMH) has been the central proposition of ﬁnance since the early 1970s and is one of the most well-studied hypotheses in all the social sciences, yet, surprisingly, there is still no consensus, even among ﬁnancial economists, as to whether the EMH holds. Five statistical analyses are conducted in an attempt to explicate such apparently contrary convictions. An analysis of daily, weekly, monthly and annual Dow Jones Industrial Average log returns found that ﬁrst-order autocorrelation is small but positive for all time periods, with the autocorrelations for daily and weekly returns closest to zero, and thus an eﬃcient market. A standard runs test showed that the hypothesis of independence is strongly rejected for daily returns, but accepted for weekly, monthly and annual...

...Issues in Fit Food Inc
Significant part of the behavioural displacement can be related to results control system that is in place. FFI is evaluating the divisional personals’ performance based on their achievement of Annual Operating plans; some of those are like
• Achieving 7% divisional growth rates
• Bonuses based on achievement (upto 150%)of annual operating plans and no bonuses on failure
• Stock options offered to corporate managers and divisional presidents
• Sean’s (founder & chairperson) call for better financial performance during those peak recessionary period(2008-2009)
These quantitative results controls can be related to those behavioural displacements. As a result presidents of Drink division and Cookie division have involved in those unacceptable fraudulent practices of aggressive revenue recognition, prepaying expenses and capitalising parts costs.
Since the CFO has the information about those fraudulent practices he should initiate the process of restating those prior year financial statements accordingly and those restatements require public disclosures. It is a serious issue for a listed company. Worse impacts would include lost of investor confidence, as a result share value deteriorates.
Suggestions : controls
Results Control
1. Instead of determining a target based on investor’s expectations, during the recession time company should have adjusted its targets according the economic condition. May be keeping the...